Economic Disturbances and Equilibrium in an Integrated Global Economy

Chapter 10

Diversity and Harmonization

Abstract

Attempts to increase the domestic production of one particular good result in inefficiencies and a decline in the production of other goods. This is a point that is commonly missed by policymakers, especially when they discuss international trade and outsourcing. Politicians tend to ignore the other side of the coin. The key point here is that the diversity and harmonization are not necessarily independent of each other, and attempting to control one may adversely affect the other and make society worse off.

Keywords

consumption harmonization and trade

currency manipulator

economic dependency

outsourcing

production diversity and trade

protectionism

Outline

1. Autarkic Equilibrium 
2. Free Trade Equilibrium ...